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Former Member

Service tax on sales based rent

Dear Friends,

In my lease rental contract, i want to capture sales based rent and service tax on sales based rent. Under the sales based rent agreement tab, I first create a reporting rule and two sales rules, One for the sales based rent and another for service tax. Sales based rent condition is chosen with calculation formula sales based rent. But for service tax condition type, the calculation formula is chosen as % share of condition and the value in % is put. When the contract is processed for sales based settlement, only the value of the sales based rent is shown as a single line item and not the service tax. Please suggest how to capture the value of the service tax also as a second line item during settlement.

Will peak sales rule be of any use? If yes please suggest how.

Regards

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2 Answers

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    Former Member
    Aug 12, 2009 at 06:00 AM

    Hi,

    Service Tax is not processed the way you are trying to.

    There is configuration of Service Tax which needs to be done.

    After that in RE-FX customizing, we need to create Tax Types and Tax Groups which need to be assigned to relevant Tax Code created in the system. These Tax Codes carry the %age value such as Service Tax shall be 10%, Education Cess 2% and Higher Education Cess 1% (in case of India)

    At the time of creation of the RE Contract, these Tax Types and Tax Groups need to be assigned in the Posting Parameters Tab Page->Postings drop down.

    System shall then calculate Service Tax on not only Sales Based OCndition Types but all the Condition Types.

    Thanx

    Pankaj Wadhwa

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    Former Member
    Dec 31, 2009 at 07:17 AM

    Please close this thread

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